STAND. COM. REP. NO. 1065

Honolulu, Hawaii

RE:    H.B. No. 1728

       H.D. 1

       S.D. 1

Honorable Colleen Hanabusa

President of the Senate

Twenty-Fifth State Legislature

Regular Session of 2009

State of Hawaii

Madam:

     Your Committee on Judiciary and Government Operations, to which was referred H.B. No. 1728, H.D. 1, entitled:

"A BILL FOR AN ACT RELATING TO FEES,"

begs leave to report as follows:

     The purpose of this measure is to increase government agency fiscal options during this economic downturn by giving administrative agencies more flexibility to increase fees and other nontax revenues from July 1, 2009, until July 1, 2015.

     Written testimony presented to the Committee may be reviewed on the Legislature's website.

     Your Committee finds that during these difficult times and considering the grave fiscal condition the State is facing, all options must be kept open.  The intent of this measure is to allow the administrative agencies more discretionary authority to set fees pursuant to statutory authority. 

     Your Committee has amended this measure by deleting its contents and inserting the provisions of Senate Bill No. 1343, S.D. 2 (2009), a measure that statutorily establishes certain governmental fees and having a sunset date of July 1, 2050 to continue the discussions.

     Your Committee finds that this amended measure addresses concerns raised in the Hawaii Supreme Court's opinion in Hawaii Insurers Council v. Lingle.  Establishing these fees by statute rather than by administrative rule would help avoid a conflict with the separation of powers doctrine, while also making administrative fees more uniform.

     As affirmed by the record of votes of the members of your Committee on Judiciary and Government Operations that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 1728, H.D. 1, as amended herein, and recommends that it pass Second Reading in the form attached hereto as H.B. No. 1728, H.D. 1, S.D. 1, and be referred to the Committee on Ways and Means.

Respectfully submitted on behalf of the members of the Committee on Judiciary and Government Operations,

____________________________

BRIAN T. TANIGUCHI, Chair